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The Toronto Community Housing Corporation has invited police to investigate two cases of “possible criminal wrongdoing” related to its dealings with outside contractors.

The city-owned social housing provider refused Wednesday to provide details about the nature of the alleged wrongdoing. In February, chief executive Gene Jones said an ongoing investigation pointed to “the possibility of kickbacks and so forth,” possible “double billing” and “shoddy work.”

TCHC spokesperson Sinead Canavan said “none of the allegations that led to the review and investigation have been substantiated.” Canavan would not say whether the possible wrongdoing involved TCHC employees, the contractors only, or both.

“The integrity of the investigation is our paramount concern,” Canavan said in an email. “As I stated earlier, discussing these matters at this time may damage our further investigative efforts and prejudice our ability to pursue criminal prosecution or civil claims.”

The board voted Wednesday to approve the hiring of a forensic accounting firm. In a news release, the TCHC said that company would “conduct further analysis of documents, data and trends that were uncovered in relation to certain contractors as part of a confidential review by a third-party firm, Executek International.”

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The investigation previously has been called an “audit” by various media outlets. In fact, it was conducted by Executek, a company run by former Toronto deputy police chief Kim Derry. Derry describes the firm on its website as a “global security and risk management organization specializing in the integration of a wide range of security disciplines.”

Executek’s work, which began in January, cost “just under $155,000,” the TCHC said, and will continue till the end of May.

Councillor Gord Perks criticized the decision to hire the company, arguing that the money would have been better spent on apartment repairs. “If they felt that what they needed was an audit, they should have hired an auditor. I don’t know what they hired these people for,” Perks said.

Canavan said Executek conducted “an independent review that focused on ascertaining whether work performed by outside vendors is providing value for money, whether staff have awarded this work properly, and whether there was cause for concern with respect to the allegations raised by staff and residents.”

“Executek took this work as far as they could. Now we are continuing the investigation with a forensic accounting firm,” she said.

At the same time as Executek worked for the TCHC, it conducted an unrelated private investigation on behalf of Councillor Giorgio Mammoliti, a former longtime TCHC board member who believed there was a conspiracy against him.

Canavan said in March the TCHC spoke with Executek leaders upon learning of its relationship with the councillor and found “no reason to believe there is a conflict of interest.”

Canavan would not say whether the police have been involved in the investigation to date. Const. Wendy Drummond said the police do not have any comment.

Board members were advised not to speak about the investigation. Canavan said the chair, Bud Purves, was in meetings late Wednesday afternoon and was not available.

Munira Abukar, a tenant representative, said, “The only thing I would say is that I’m kind of glad that the institutions are working together to ensure that we’re really solving problems, really tackling these issues, and that the police are really taking the matter seriously.”

Canavan said in Aprilthe TCHC expected to reveal the outcome of the investigation in June. She said Wednesday that it will now be “some time” before the findings of the forensic audit are available.

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